Barnes & Noble's Profit Ebbs

By

Mike Barris

Updated March 20, 2008 12:12 pm ET

Barnes & Noble Inc., heading into a year it has painted as challenging, posted a 9.2% drop in fiscal fourth-quarter net income on weaker margins. But the bookseller also boosted its dividend and projected a surprise profit&nbsp;for the current quarter.

The news is a contrast to smaller rival Borders Group Inc., which overnight sent up a distress flag in saying the company is suspending its dividend and could be sold as the credit crunch has cut off capital-raising avenues.